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HomeMy WebLinkAbout0948 ~ UN~ow?f CoveN~Nrs. Borrower and Lender covenant and agree as fo~lows: 1. laymest oE P~incl~l asd late~st. Borrower shall prumptly pay when due the principal o[ and interest on the indebtedness evidenced by the Note, prepaymtnt and late charges as provieied in the Note, s~d the principal of and int~rest on any Futuro Advances secured by this Mortgage. 2. Fbnds Eor Tues and Iosuance. Subject to applicable Iaw or to a written waiver by Lender, Borrower shall pay to Lender on th~ day monthly instalimenis of principat and interest are payable u~der the Note, until the Note is paid in [uU, a suin (herein "Funds") equal to o~e-twelfth o[ the yearly taxes and assessme~is which may attain priority over this Mortgage, artd ground renta on the Property, if any, plus one-twelfth of yearly premium instaliments for hazard insurance, plus om-twelfth of yeasly premium i~stailments for mortgage insurance, if any, all as ressonably atimated initially and from time to time by Le~der on the basis of assessments and bilis and reasonable estimates thereof. The Funds shali be held in an institution ihe deposits or accounts .~f which are insured or guaranteed by a Fecieral or state.agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits 1_ender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this 1~lortgage thai interest on the Funds shall be paid to Borrower, and unless such agreernent is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of ths Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional sec.urity for the sums secured by this Mortgage. If the amount of ihe Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fali due, such excess sha{I be, at Borrowe~'s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds ~ held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shal[ pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sunu secured by this Mortgage, l.ender shall promptly refund to Borrower any Funds held by L.ender. If under paragraph 18 hereef the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds hetd by L~nder at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender un~er the Note and paragraphs 1 and 2 hereof shall be applied by l.ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Cltarges; Lkns. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the r~ianner I providei! under paragraph 2 hereof or, if not paid in such manner, by Borrower making papment, when due, directly to the ~ payee thereof. Bonower shall prompdy furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by suc6lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, ~ legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. ~ 5. Haz~rd Insnrance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured . against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of - ' such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. ~ 'Ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, ( that such approval shall not be unreasonably withheld. Atl premiums on insurance policies shall be paid in the manner ( provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the ~ insurance carrier. ~ All insurance policies and renewals thereof shall be in form acceptable to L.ender and shall include a standard mortgage clause in favor of and in form acceptable to L.ender. Lender shall have the right to hold the policies and renewals thereof, ~ and Borrower shall promptly furnish to Leader all renewal notices and all receipts of paid premiums. In the event of loss, ~ Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompdy by Borrower. ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby imgaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this biortgage, with the excess, if any, psid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier ~ffen to settle a claim for insuraace benefits, Lender is authorized to collect and apply the insurance proceeds at Le~der's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend ~ or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of ~ such insialtments. ]f under paragraph t8 hereof the Property ic acquired bp L.ender, all right, tide and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resultiog from damage to the Pcoperty prior to the sale ~ or acquisition shall pass to I.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or ~ acquisition. 6. Preservation sud Mainteoance of Prc?perty; Leaseholds; Condominiums; Planned Unit Developments. Borrower ~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property Q and shall comply with the provisioas of any lease if this Mortgage is on a leasehold. If this Martgage is on a unit in a k condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and eonstituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the coveaants and agreements of such rider ! shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Secerity. If Borrower fails to perform the covenants and agreements contained in this . Mortgage, or if any action or proceeding is commenced which materially af~ects Lender's interest in the Property, ~ including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a " bankrupt or decedent, then L.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such ~ sums and take such actian as is necessary to protect L.ender's interest, including, but not limited to, dislsursement of ~ reasonable attomey's fees and entry upon the Property to make repairs. 1f Lender required mortgage insurance as a ~ condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and . ' ~ ' } ~ 800K 4~ / PAGE 9~ ~ ~ . , . _ . , _ _ . ,~r . , - _ - - ~